CBDT Specifies IRFC Ten Year Zero Coupon Bond

The Ministry of Finance, through the Central Board of Direct Taxes (CBDT), has issued Notification No. 48/2025 specifying a particular bond as a “zero coupon bond” for the purposes of clause (48) of section 2 of the Income-tax Act, 1961. This specification is made under the powers conferred by the said section, read with relevant rules of the Income-tax Rules, 1962. The bond specified is the Ten Year Zero Coupon Bond of Indian Railway Finance Corporation Ltd. Key particulars of this bond, as outlined in the notification, include a period of life of ten years. The bond is scheduled to be issued on or before March 31, 2027. The total amount to be paid on maturity or redemption of the bond is Rs. 10,000 crores. The notification also specifies a total discount amount of Rs. 4,916.51 crores and the number of bonds to be issued as ten lakh. This official notification establishes the designated tax treatment for this specific financial instrument under Indian income tax law.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)

Notification No. 48/2025- Income Tax | Dated: 14th May, 2025

S.O. 2137(E).— In exercise of the powers conferred by clause (48) of section 2 of the Income-tax Act, 1961 (43 of 1961), read with clause (ii), clause (iii) and clause (v) of sub-rule (3) and sub-rule (6) of rule 8B of the Income-tax Rules, 1962, the Central Government hereby specifies the bond with the following particulars as zero coupon bond for the purposes of the said clause (48) of section 2 of the said Act, namely :-

[Notification No. 48/2025/F. No. 300164/3/2024-ITA-1]
MEENAKSHI SINGH, Dy. Secy.